DNB paper looks at announcements of LTV ratios
Effectiveness of macro-prudential measure is considerably affected by design, researchers say
The effectiveness of loan-to-value ratio limits is affected by how they are designed, a working paper published by the Netherlands Bank argues.
In Effects of LTV announcements in EU economies, Dimitris Mokas and Massimo Giuliodori note that previous studies of LTV limits have focused on when they became effective. They look instead at data on when macro-prudential bodies announced these policies.
The authors use data on the announcements by central banks and other authorities of LTV ratios
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